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Downe Communications v. Aetna Casualty Surety Co.

Court of Appeals of the State of New York
Oct 30, 1975
37 N.Y.2d 903 (N.Y. 1975)

Opinion

Argued September 18, 1975

Decided October 30, 1975

Appeal from the Appellate Division of the Supreme Court in the First Judicial Department, BERNARD NADEL, J.

William P. Sullivan, Jr., and Alfred J. Morgan, Jr., for defendant and interpleading plaintiff-appellant.

Charles Sutton for interpleaded defendant-appellant.

Paul Weinstein and Frederick Weinberger for interpleaded defendant-respondent.

Harold J. Smith and George R. Hinckley for plaintiff-respondent.


MEMORANDUM. The order of the Appellate Division should be modified to the extent of granting defendant (and interpleading plaintiff) Aetna's cross motion for summary judgment, directing that it be permitted to deposit the amount of its bond into court and, as so modified, affirmed, with costs to prevailing parties; and the question certified should be answered in the negative.

Since Aetna "may be exposed to multiple liability as a result of adverse claims", it qualifies as a stakeholder (CPLR 1006, subd [a]) and may seek to be discharged pursuant to the provisions of CPLR 1006 (subd [f]) provision. In such circumstance, "[a]bsent laches, a motion for discharge of the stakeholder should be granted, assuming no other valid objection" is made (2 Weinstein-Korn-Miller, N Y Civ Prac, par 1006.13, p 10-103). No claim of laches is made, nor is there any other valid objection to the relief sought by Aetna. Subject to the possible award of costs, by the express terms of the attachment bond forming Aetna's liability, such liability cannot exceed the amount it seeks to deposit in court and, hence, Aetna's cross motion for summary judgment should have been granted.

There is no triable issue of fact that would preclude summary judgment on the main appeal. In the prior action by interpleaded defendant-appellant Dayon against plaintiff Downe Communications, Inc., it was conclusively decided that Dayon was not entitled to the order of attachment (Dayon v Downe Communications, 41 A.D.2d 611, app dsmd 32 N.Y.2d 937). Thus, plaintiff was properly awarded summary judgment on the issue of liability on the bond (see Subin v United States Fid. Guar. Co., 12 A.D.2d 49, 50).

Nor has a triable issue been raised respecting interpleaded defendant-respondent Sheriff Kehl's right to summary judgment. The claim is made that since Sheriff Kehl did not reduce the attached property to his possession that poundage is not due him. However, it is not necessary for the Sheriff to have reduced the property to his physical possession or to have actual custody in order to be entitled to poundage (Gimenez v Great Atlantic Pacific Tea Co., 242 App. Div. 485; Esselstyn v Union Sur. Guar. Co., 82 App. Div. 474). All that is necessary is a properly effectuated levy (see CPLR 8012, subd [b], par 3) which, in this case, was accomplished by service of a copy of the order of attachment upon two banks which were indebted to Downe Communications (see CPLR 6214, subd [a]). Moreover, it has never been held, as Dayon asserts, that the amount of poundage is discretionary.

We have examined Dayon's other contentions and find them without merit.

Chief Judge BREITEL and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and COOKE concur.

Order modified, with costs to the prevailing parties against interpleaded defendant-appellant Dayon, in accordance with the memorandum herein and, as so modified, affirmed. Question certified answered in the negative.


Summaries of

Downe Communications v. Aetna Casualty Surety Co.

Court of Appeals of the State of New York
Oct 30, 1975
37 N.Y.2d 903 (N.Y. 1975)
Case details for

Downe Communications v. Aetna Casualty Surety Co.

Case Details

Full title:DOWNE COMMUNICATIONS, INC., Respondent, v. AETNA CASUALTY AND SURETY…

Court:Court of Appeals of the State of New York

Date published: Oct 30, 1975

Citations

37 N.Y.2d 903 (N.Y. 1975)
378 N.Y.S.2d 379
340 N.E.2d 742

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